Pharis Energy was established in early 2014, as The Steam Oil Production Company Ltd, by petroleum engineers, with the intention of initiating the first major offshore steam flood project in the world.
The company participated in the 28th Seaward Licensing Round and in November 2014 was awarded block 21/27a under Promote Licence P2244; in October 2018 the OGA approved Pharis Energy as Operator of the licence, which is now in its second term. The company was also awarded blocks surrounding the Pilot field in both the 29th and 31st Seaward Licensing Rounds.
P2244 contains the Pilot and Harbour heavy oil discoveries which together have 272 mmbbls of oil in place. P2320 contains the Blakeney, Feugh, Dandy & Crinan discoveries which have a combined 147 mmbbls of oil in place, as well as the Bowhead and Titchwell prospects. In the 31st Seaward Round Pharis has been offered a 100% interest in blocks 28/2a and 28/3a which contain the Elke and Narwhal discoveries with over 200 mmbbls of oil in place.
With the exception of the smaller Dandy & Crinan discoveries, all the oil in these fields is heavy and quite viscous, with API gravities in the range of 12º to 17º and viscosities that range from 160 centipoise to 1,200 centipoise at reservoir conditions.
Pilot, Dandy and Harbour are very well appraised with high quality modern 3D seismic and nine wells with additional sidetracks. Blakeney, Elke and Feugh are single well discoveries with modern 3D seismic.
Steam flooding is very effective at recovering heavy viscous oil, and recovery factors are much higher than water flooding alone can achieve. However, steam flooding works best in shallow reservoirs; Pilot is one of the few North Sea fields which meets all the conventional screening criteria for a successful steam flood, though the opportunity to maximise economic recovery through the application of steam flooding technology across the UKCS is substantial.
An integrated steam flood development of all of the discovered heavy oil fields in Pharis's acreage on the Western Platform could recover about 270 mmbbls and be one of the most important North Sea projects in the coming decade. Exploration success at Bowhead and Titchwell could double recoverable reserves from our licences.
We are currently working on the design of a phased development project of the Pilot field which enables us to confirm that steam flooding does indeed maximise economic recovery from these heavy oil fields whilst retaining the option to adopt a conventional hot waterflood recovery mechanism which we have also modelled, and which would recover about 120 mmbbls from Pilot, Elke & Blakeney.
This innovative approach to development of the UK’s heavy oil resources can make a major contribution to maximising economic recovery of North Sea oil from the UKCS. Pharis has assessed the suitability of a number of undeveloped heavy oil fields across the UKCS and concluded that there are about 8 billion barrels of already discovered heavy oil in place across the UKCS in shallow sandstone reservoirs suitable for steam flooding.
Pharis believe a widespread application of steam flooding could add over 4 billion bbls to the current estimates of remaining recoverable resources on the UKCS.